The Ultimate Guide to Merchant Cash Advances

How do Merchant Cash Advances work? 

This Ultimate Guide to Merchant Cash Advances from United Funding Group covers everything you need to know about rates, payments, and timelines for this business financing option. If you have any questions about Merchant Cash Advances after reading this Ultimate Guide, please contact us! We’d be happy to help you find the best financing option for your business!

Merchant Cash Advance Vs. Business Line of Credit

The two business financing options are fairly similar, but they have their pros and cons. A Merchant Cash Advance (MCA) is a non-recourse loan that’s funded from your credit card transactions. A Business Line of Credit (BLOC) has more flexible terms for when you pay back funds, but it also comes with significantly higher payments.

Understanding How Fees Work

When you receive a merchant cash advance, there are generally three separate fees that come with it: A finder’s fee (sometimes known as a broker fee), an origination fee, and interest. The way in which these fees work depends on whether or not you have a line of credit associated with your account and what type of transaction is being made. There are two main types of loans for MCA’s: Revolving & Non-Revolving lines of credit. You may choose either one depending on your individual needs. 

Transparency in the MCA Process

Business owners want to know all about their options and what it will cost them when financing a business. To ensure that you’re making an informed decision, make sure you find a lender who is willing to be transparent throughout your entire transaction, including interest rates, fees and payment schedules. Lenders like United Funding Group are committed to transparency through every step of their MCA process. Contact us today if you’d like more information on rates, payments and timelines associated with our services!

Funding Within One Business Day

A merchant cash advance is a method of business funding that offers access to capital within one business day. Because traditional financing is often tedious and time-consuming, merchants are turning to merchant cash advances (MCA) as an alternative method of financing.

What Kinds of Businesses Qualify?

Any business operating in North America with low-to-excellent credit rating can qualify for a merchant cash advance. UFG partners with companies in a variety of industries, including: insurance and property management, healthcare, hospitality and dining, IT services, and retail. If you don’t see your industry listed above but you’re still interested in learning more about merchant cash advances, contact us directly at (954) 287-4539 to learn more about what types of businesses qualify.

Understanding Rates & Repayment Terms

Understanding rates and repayment terms is one of the most important steps in getting a Merchant Cash Advance. Rates for MCA’s will vary significantly from one provider to another; getting a 10% loan from one provider is far different than taking out a 10% loan from another. Look into repayment terms as well – if you can take out a $50,000 loan at 5%, but your payments are $5,000 per month, that would be more expensive than taking out a $25,000 loan at 15%. Pay close attention to rates and terms when comparing different providers so you can find an MCA that best fits your needs. That being said, it’s common practice for businesses to borrow between 80-120% of their monthly credit card sales (and note: credit card sales isn’t synonymous with income—it doesn’t include cash purchases). This means that successful businesses will usually carry a balance equal to 20-60% of their overall annual revenue. 

Scheduling Payments by Pre-Authorized Debit (PAD)

Unlike loans and credit cards, merchant cash advances make scheduled payments by pre-authorized debit. Scheduled payments help merchants manage their cash flow more efficiently because they don’t have to worry about forgetting a due date or avoiding paying a payment fee. In addition, PADs allow merchants to request amounts less than $10,000; credit card transactions can have limits as low as $500. Just like every other form of business financing, merchant cash advances aren’t one-size-fits-all and should be customized based on your business needs.

Do I Need Additional Finance Options? Contact United Funding Group to Learn More!

To many small business owners, a traditional loan from a bank or credit union is an appealing way to get access to capital. But in some cases, those loans might not be available or may not come with an attractive enough interest rate. Consider another option: merchant cash advances (MCAs). These specialized financing options allow you to borrow money from a third-party lender—one that works with businesses in your industry—and you repay it through your daily sales proceeds. You can take out multiple MCAs for several different purposes, and each one will come with its own set of terms and conditions.

For more information or answers to any questions, you may have, contact United Funding Group today!

Is a Merchant Cash Advance Good for Your Business?

A merchant cash advance from United Funding Group can be an excellent way to finance your small business, but only if you do it right! Learn how to assess your company’s needs and if a merchant cash advance from United Funding Group fits into your overall financial strategy in this article on merchant cash advances.

What is a Merchant Cash Advance and Why Get One

A merchant cash advance (also known as MCA) is short-term financing that gets you cash quickly. The benefits of an MCA are numerous, with increased revenue being just one of them. If you’re currently looking to grow your business but don’t have enough capital on hand, then a merchant cash advance may be a good option for you.

Benefits of Merchant Cash Advances for Small Businesses

Unlike loans that require you to pay interest on your balance, merchant cash advances have few strings attached. You get to keep 100% of your credit card processing revenue, as well as keep your existing merchant account. There are no extra fees or hidden charges. And, you won’t be stuck with loans lasting several years—cash advances can be paid out in anywhere from 30 days to 12 months.

Understanding Payments, Rates, Fees and Timelines

Terms like APR, finance charge and commission can be confusing, especially when you’re looking at whether to get a merchant cash advance. To make sense of it all, it’s important to understand how these terms are used in business. If you need help figuring out what type of small business loan is best for your business, feel free to contact us or check out our guide on rates, payments and timelines. We’ll help you better understand what to expect from different financial services so that you can make an informed decision about whether a merchant cash advance makes sense for your company.

The Process of Getting a Merchant Cash Advance

The merchant cash advance industry is growing exponentially, as more businesses and business owners search for viable financing options. Before you jump on board with one of these loans, it’s important to know what’s involved in getting one. In order to qualify, you’ll need at least six months of business operating history, and be able to provide tax returns (or be willing to provide them when requested). Next comes something called proof of funds—where they take into account how much money you make on average per month. 

How to Use Funds From Merchant Cash Advance

A merchant cash advance from United Funding Group is your best option, here are some ways to use those funds: 

  • Make necessary upgrades: If you’re interested in new point-of-sale systems or credit card machines, now is an ideal time to do so. Not only will these upgrades make your business more efficient, but they can help prevent business interruptions.
  • Pay down debt: If you are carrying high-interest debt, like credit cards or even one of our personal loans, consider using funds from your merchant cash advance to pay it off. This can help lower interest rates on future debts and put you in a better financial position overall.

How Can You Afford Not to Get an MCA Loan?

Many small business owners take out merchant cash advances because they’re tired of hearing no from traditional lenders. Without an MCA loan, many businesses would never get off the ground or even survive through tough economic times. When you choose an MCA lender like United Funding Group, it’s easy to see why so many borrowers have gotten an MCA loan to finance their growing businesses. 

Why Choose United Funding Group as Your Provider?

While there are many financing options available to small businesses, most fail to meet all of a business owner’s needs. A merchant cash advance is a popular form of business financing because it offers more flexibility than traditional bank loans, which often come with strict repayment terms and high-interest rates. With United Funding Group’s flexible repayment structure, you can repay your capital in full whenever it makes sense for your business — whether that’s in 30 days or three years. We don’t charge any prepayment fees or hidden costs. Apply quickly here

So if you’re looking for small business loans that will work with your busy schedule and offer financial flexibility, then contact United Funding Group today!

3 Signs Your Small Business Needs a Merchant Cash Advance

For some small businesses, cash flow is always a concern. You may be struggling to get by on the money you bring in each month, or your customer base may not be growing as quickly as you’d like. Either way, the cash on hand may not be enough to cover the bills and keep the business growing. Fortunately, there are ways you can use a Merchant Cash Advance from United Funding Group to start getting the capital you need without having to take out any loans at all! Read on to learn more about Merchant Cash Advance services and how they can benefit your small business today!

The 3 signs:

  • Are you experiencing cash flow issues? 
  • Are you finding it difficult to get approved for business loans? 
  • Do you want to grow your business? 

If you answered yes to any of these questions, then United Funding Group offers merchant cash advances as an alternative. With our Merchant Cash Advance services, your business can receive between $5,000 and $500,000 within 24 hours. And because merchant cash advances don’t require collateral or personal guarantees—you won’t have to worry about signing away your house or car.

Merchant cash advance explained

A merchant cash advance (or MCA) is a type of financing that’s often used by small business owners to help them buy inventory and/or keep their doors open while they wait for customers to pay invoices. But what exactly is an MCA? And how does it work? In short, it’s a line of credit you can tap into to purchase goods or services from suppliers (and, in some cases, other business essentials like rent or payroll). The funds are borrowed against your future sales—so there’s no need for collateral or upfront fees. United Funding Group provides Merchant Cash Advances nationwide. Contact our team today to learn more about how MCAs can help your small business reach its potential!

Why small business owners need small business loans

Most small business owners don’t need to think about what it would be like to not have a small business. But as any successful entrepreneur will tell you, starting and running one isn’t easy—and there are some situations in which your business might require external help in order to get over a financial hurdle.

How merchant cash advances help small businesses

One of United Funding Group’s specialties is working with small businesses. If you’re running a small business, chances are you’ve run into some cash flow problems along the way. A merchant cash advance can help solve those problems. These advances get paid out in one lump sum and offer repayment terms as long as 24 months!

Questions? Reach out today!

Contact United Funding Group at (954) 287-4539 to learn more about our Merchant Cash Advance services for small businesses. No obligation, of course! When it comes to your business’s future, there are many factors to consider – and luckily we can help you navigate them all.  You can apply now – and contact us with any questions.

For more information or answers to any questions, you may have, call us at (954) 287-4539 today!